As entrepreneurs it’s always a good idea to determine which service is most profitable and will grow your business best. Recently, I’ve been asked to investigate Salehoo to determine whether or not dropshippers should use their service. This Salehoo review will detail Salehoo pros and cons and whether or not it’s good for dropshipping.
Salehoo Review – What is Salehoo?
Salehoo is a wholesale supplier directory service that connects dropshippers to suppliers. The New Zealand company has suppliers from countries from the United States, UK and Australia on their platform.
Dropshippers use their sourcing tool to connect with suppliers, manufacturers and liquidators to get access to products at wholesale prices that they can sell to consumers. Many of Salehoo’s customers then sell the dropshipped goods via eBay, Amazon or Etsy to turn a profit.
Salehoo also offers website templates so dropshippers can start their own online store via their platform. While their backend isn’t as powerful as Shopify’s it’s a fair starting point for inexperienced dropshippers. However, you need to be a premium member to have access to this feature.
Salehoo Review – Is Salehoo Legit?
While there is a high number of affiliate reviews online, the general consensus is that Salehoo is a legitimate company. Whether or not dropshippers are running highly profitable businesses via the platform can be debated. However, Salehoo doesn’t appear to be a scam, or a poorly developed solution.
Salehoo Review – Is It Profitable?
Take a look at the images below. In the first image, you see the Potential Profit a dropshipper can make on a Panda Onesie for kids according to Salehoo. However, on Amazon, the most popular seller of the product charges between $14.99 and $16.99. In general, Amazon is an indicator for what market value really is for a product. A person selling it on eBay would be outpriced by the several variations of the same product available on Amazon for much cheaper. If a dropshipper were to follow the recommended $36.99 they would likely lose sales to dropshippers who are retailing the product at about half the price. Thus, while a dropshipper may be able to make a profit on Salehoo, the amount is likely not as high as they’d hope.
Salehoo Review – Pros
- Great customer service – When it comes to customer service, Salehoo delivers it well. It has an A+ rating on Better Business Bureau. It’s obvious that this established brand, since 2005, knows how to treat its customers. Customers of all price plans have access to phone and email support, though this is standard across most companies. Generally, people who use this service feel that customer service is fair. Customers don’t struggle to cancel subscriptions making this a legit company.
- Has top brands as products – Another great thing about Salehoo is that it has access to over 1.6 brand name products. You can sell products from top brands like Disney, Victoria’s Secret, Sony and more.
Salehoo Review – Cons
- Competitive to sell brand name products – The biggest downside to selling brand name products is that customers can usually find the products cheaper on the brand’s website or on Amazon. Thus, making it much more competitive to sell than if you were to dropship from AliExpress. Notably, if a customer recognizes a brand, they’ll be more likely to search for a deal than if the product were unbranded. It’s much more difficult to know the source of an unbranded dropshipped product.
- Harder to create own brand – With branded products, you’re forced to create a marketplace brand like Walmart or use a marketplace like eBay. Unfortunately, new startups lack the volume that mega brands like Walmart have built up over the years. In addition, using a marketplace like eBay is highly competitive which results in price feuds that eat away at your profits. With AliExpress dropshipping, unbranded products allow you to create your own brand where people keep coming back to your store.
- Price – Salehoo’s price isn’t competitive within the dropshipping industry. Their lowest basic plan starts at $27/month. You can also purchase it for $67/year. On the other hand, Oberlo’s starter plan is free, forever. With Oberlo, customers can add 500 products to their store and manage 50 orders a month, for free.
- Product database is small – At first glance, a directory of over 1.6 million products sounds high. However, when you factor in how many niches there are, the number is actually quite small. In addition, compared to the Oberlo Marketplace the number of products on Salehoo pales in comparison.
- Most sell on eBay or Amazon which is overcrowded – The ability to sell products on eBay or Amazon is amazing. However, when you’re a dropshipper, they’re the worst places to sell your products. You’ll be competing on price with other dropshippers and even the manufacturer. Thus, your margins are completely destroyed. In addition, the lowest wholesale prices can usually be found on AliExpress making it next to impossible to compete.
Alternatives to Salehoo
When it comes to dropshipping, Oberlo provides its customers the ability to make a sizeable profit with its free Starter Plan, high product margins and its free resources for entrepreneurs.
Oberlo users sell Chinese manufacturers’ dropshipped goods via their own website. This allows you, the dropshipper to create your own brand with your own unbranded products. As products aren’t associated with any particular brand, you’ll be able to get customers to keep coming back to your website to keep buying your own products.
Another benefit to Oberlo are the product prices. Most people know that China is the king in the manufacturing world, almost everything is made there. As a result, you’ll have access to some of the lowest product pricing in the market when it comes to dropshipped goods.
Next, you can also easily view product reviews and ratings to help you ensure that the products you import are of high quality. Customers often leave picture reviews so you can see when the untouched up product looks like from a customer perspective to ensure the quality. This helps you make an informed decision about whether or not to import certain products to your store.
Lastly, when it comes to real customer feedback you can read over 1100 Oberlo reviews in the Shopify App Store. Dropshippers love that it’s easy to use, has saved them time, has played an important role in their business, and makes importing products a breeze.
The best part is that you can start your dropshipping store today for free. Sign up for Oberlo’s forever free Starter Plan now!